The big investment theme I'm most excited about right now

If you've been following along with my recent e-mails, you'll know I've still been upbeat on stocks and the economy. But I also have my eye on one corner of the market in particular...

If you missed them, in Thursday's and Friday's e-mails, I discussed my upbeat macroeconomic outlook – using slides from the presentation I gave last Wednesday evening at an event hosted by the Harvard Business School Club of New York.

And when it comes to where I'm most excited in the markets, it's nuclear energy.

It all comes down to the huge demand for electricity.

Part of this is driven by the data centers needed to power artificial intelligence ("AI"). For example, an AI query consumes roughly 10 times the electricity as a routine Google search! Take a look at this chart I shared in my presentation:

It would be nice if we could fully meet this massive demand from renewable sources. But that's not possible today – and won't be for many, many years (if ever, given that the wind doesn't always blow and the sun doesn't always shine).

So that means our electricity needs are going to have to be met by natural gas, coal, and nuclear energy.

Given the limitations of renewables and the worldwide push to reduce the use of fossil fuels, I'm particularly bullish on the prospects for nuclear energy – and uranium.

And nuclear power is dependable. In fact, last year, nuclear plants ran more than 90% of the time. That made them the single-most reliable source of electricity in the U.S. Here's a chart from a report my team here at Stansberry Research put together on this:

And as you can see in this next graphic, nuclear power is also among the safest sources of energy:

And there are about 440 nuclear power reactors currently in operation globally, with another 100 under construction – the vast majority of which are in Asia. Take a look at this chart showing current reactors and recent construction:

As a result, according to a recent Bloomberg article, Deadly and Wildly Profitable, Uranium Fever Breaks Out, uranium supply cannot keep up with demand – and the gap is expected to widen dramatically. Excerpt:

A big part of the allure of the uranium business is the sense that supply and demand are out of whack. Demand for the metal from China, India, Japan, the US and Europe is rising at a significantly faster pace than miners can pull it out of the ground.

By one estimate – from Treva Klingbiel, president of TradeTech, a data provider for the industry – demand could outstrip supply by more than 100 million pounds per year through the 2030s.

You won't be surprised to learn, therefore, that the price of uranium is soaring. Take a look at this chart from that same Bloomberg article:

And when it comes to nuclear power, some of the world's richest people are also putting money behind it.

For example, Microsoft (MSFT) co-founder Bill Gates has invested more than $1 billion into a new company called TerraPower that just broke ground on a new generation of nuclear power plant in the coal town of Kemmerer, Wyoming.

The New York Times just ran a story about it last week: Nuclear Power Is Hard. A Climate-Minded Billionaire Wants to Make It Easier. Excerpt:

Workers began construction on Tuesday on a novel type of nuclear reactor meant to be smaller and cheaper than the hulking reactors of old and designed to produce electricity without the carbon dioxide that is rapidly heating the planet...

Nationwide, nuclear power is seeing a resurgence of interest, with several start-ups jockeying to build a wave of smaller reactors and the Biden administration offering hefty tax credits for new plants...

At a recent conference in New York, David Crane, the Energy Department under secretary for infrastructure, said that two years ago he "didn't really see" a case for next-generation reactors. But as demand for electricity surges because of new data centers, factories and electric vehicles, Mr. Crane said he had become "very bullish" on nuclear to provide carbon-free power around the clock without needing much land.

So, in summary, we have a huge need for electricity – and nuclear power is a clear answer to help meet all this demand.

And right now at Stansberry Research, my team and I have identified our favorite ways to play this megatrend...

As part of our Commodity Supercycles newsletter, we published a special report entitled "The Top Stocks for the Nuclear Renaissance" with all the details on our top five nuclear power stocks. (If you're already a subscriber, you can access it right here.)

If you aren't a subscriber, you can find out how to gain instant access to this new report – and learn more about a little-known technology that's revolutionizing nuclear power – right here.

Best regards,

Whitney

P.S. I ran a 10K race in Queens on Saturday, finishing in the top 20% (I posted details and pictures on Facebook here). I also had a wonderful Father's Day, which included tennis with my wife and two younger daughters and then dinner with all of my daughters and in-laws.

Here are some pictures:

Happy (belated) Father's Day to my fellow dads out there!

P.P.S. I welcome your feedback – send me an e-mail by clicking here.